Former prime minister Manmohan Singh Wednesday said the relationship between the central bank and the Finance Ministry has hit a low, targetting the rift between the Reserve Bank of India (RBI) and the Modi government.
Addressing a press conference ahead of the November 28 Madhya Pradesh Assembly polls, the former Union finance minister underlined the need for coordination" between the two
organisations.
"The relationship between the RBI and Finance Ministry has hit a low," he said. Harmony and coordination between both was essential for the country, he added.
"The RBI governor and finance minister have a delicate relationship. Both have to work together. Although the job of running the country rests with the government, (a) specific
responsibility is given to the RBI governor by the RBI Act. There is a need to recognise inter dependence of the two entities and work in harmony," he said.
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"I am happy with the efforts being made to bring reconciliation. Both need to work in harmony with each other," he said.
On his comments that Modi as prime minister would be a "disaster" for India, Singh said he did not want to comment on his earlier remarks.
"I used harsh words which I should not have. Now people will make the decision," he said.
Singh accused Modi of misusing the Prime Minister's post. "It does not befit the PM to abuse political opponents," he said, adding Modi was using "unparliamentary words" against
the opposition.
He also denied Modi's claim that the UPA government led by him was a "remote-controlled" one. "The success of my government was because the party and government were on one
page. There was no difference of opinion," he said.
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Earlier in the day, former Finance Minister P. Chidambaram slammed Prime Minister Narendra Modi for remarking demonetisation as a "bitter" medicine to get rid of black money. Chindambaram claimed that it destroyed the Micro, Small and Medium Enterprises (MSME) and now the government wanted RBI to revive the sector.
(With inputs from agencies)
